WATER SUPPLYIN THAILAND

WATER SUPPLYIN THAILAND

- ENCOURAGE PRIVATE SECTOR INVOLVEMENT

- IMPROVE ENVIRONMENTAL STANDARDS

- PROVIDE BASIC NEED IN POVERTY AREAS

- UTILIZE LOW-COST AND APPROPRIATE TECHNOLOGY

SECTOR POLICY

WATER URBAN AREAS MWA,PWA,MUNICIPALITIES

RURAL AREAS

PIPED PWA,LOCALAUTHORITIES

NON-PIPED PWD,DOH,ARD,DMR,..

SEWERAGE BANGKOK BMA

OTHER URBAN AREAS

PCD,PWD,WMAMUNICIPALITIES

SECTOR INSTITUTIONS

SECTOR SITUATIONSECTOR SITUATION

AGENCY COVERAGE CAPACITYAGENCY COVERAGE CAPACITY

URBAN AREASURBAN AREASMWA 75% OF 8 MILLION 3.2 MCMD MWA 75% OF 8 MILLION 3.2 MCMD PWA 72% OF 12 MILLION 2.98 MCMDPWA 72% OF 12 MILLION 2.98 MCMD

(225 WW’S) (225 WW’S)OTHERS 70% OF 3 MILLION 0.2 MCMDOTHERS 70% OF 3 MILLION 0.2 MCMD INDUSTRIAL AREASINDUSTRIAL AREASEAST WATER EASTERN SEABOARDEAST WATER EASTERN SEABOARDIEAT 18 INDUSTRIAL ESTATESIEAT 18 INDUSTRIAL ESTATESRURAL AREASRURAL AREASGOV’T DEPT’S PIPED SUPPLY IN 8,000 VILLAGES GOV’T DEPT’S PIPED SUPPLY IN 8,000 VILLAGES

NON-PIPED IN 56,000 VILLAGES NON-PIPED IN 56,000 VILLAGES

WATER SUPPLYWATER SUPPLY

SEWESEWERRAGEAGE

AGENCY COVERAGE CAPACITYAGENCY COVERAGE CAPACITY

BMA 90% OF GREATER 1 MCM / DBMA 90% OF GREATER 1 MCM / D BANGKOK (158 SQ KM)BANGKOK (158 SQ KM) BY 2000BY 2000

LOCAL GOV. OTHER CITIESLOCAL GOV. OTHER CITIESPWD, PCDPWD, PCD

IEAT INDUSTRIAL ESTATESIEAT INDUSTRIAL ESTATES

SECTOR SITUATIONSECTOR SITUATION

POPULATION IN URBAN AND RURAL AREAS

OTHERS3 MIL

URBAN

MWA 8 MIL PWA 12 MIL

RURAL 39 MIL

MWA

73 PROVINCES647 MUNICIPAL AREAS6,946 SQ.KM.8.6 MILLION POPULATION SERVED

PWA

3 PROVINCES1,621 SQ.KM.

PWAMAP

AREAS

STATISTICSSTATISTICS

MWA OPERATION HIGHLIGHT YR 2001 WATER PRODUCTION (Mill.cu.m.) 1,415

WATER SALES (Mill.cu.m.) 857

SERVICE AREA (Sq.km.) 1,148

NO.OF CONNECTION 1,384,958

AVERAGE MONTHLY WATERCONSUMPTION PER CUSTOMER(cu.m / Month ) 51.6

AVERAGE WATER CHARGE(Baht/cu.m.) 10.42

NO.OF STAFF 5,312

STATISTICSSTATISTICS

PWA population servedyr 2001

PWAcustomers8.62 mill.

population in

urban areas23 Mill.

population in

Thailand 62 Mill

population in service

areas 11.93 Mill.

PWA STATISTICS YR 2001

•NO. OF WATERWORKS 225

•NO. OF CONNECTIONS(MILL.) 1.72

MILL. PERSONS ~8.6

•NO. OF STAFF 6,458

•WATER PRODUCED(MILL.CU.M./YR) 704

•WATER SOLD (MILL.CU.M./YR) 474

•CAPACITIES(MILL. CU.M./DAY) 2.983

•CUSTOMER:POPULATION(IN SERVICE AREA) 72 %

•TARIFF RATE (SATANG/LITER) ~1

CUSTOMERS FY 1980-2001

298,495

333,534

377,241

437,357

588,801676,197

769,215864,966

960,172

1,194,7421,324,186

1,453,4851,531,186

1,585,6081,662,863

1,723,470

1,065,761

515,175

474,997

405,522

354,940

315,785

0

200,

000

400,

000

600,

000

800,

000

1,00

0,000

1,20

0,000

1,40

0,000

1,60

0,000

1,80

0,000

2,00

0,000

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

FY

CASES

MAN POWER FY 1980-2001

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

STAFF RATIO FY 1980-2001

NO.OF CONNECTIONS :STAFF

17.6516.51

15.4714.52

13.6212.64

11.8110.89

10.078.91 8.4

7.556.93 6.51

5.88 5.645.01 5.2 4.86 4.55 4.03 3.75

02

46

81

01

21

41

61

82

02

22

4

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

0

50

100

150

200

250

300

NO.OF STAFF :1,000 CONNECTIONS

0

100

200

300

400

500

600

700

800

0

10

20

30

40

50

60

70

80

90

100

MILLION CU.M. %

WATER PRODUCED WATER SOLD NON-REVENUE

WATER PRODUCED AND WATER SOLDFY 1980-2001

RURAL WATERWORKS ACQUISITION FY 1984-2001

353344328321312

17

305296

244

287

212

2 10 1622

67

149

112

0

50

100

150

200

250

300

35019

84

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

NO.OF WWS"

FY

PSP OPTIONS PUBLIC OWNERSHIP

1) Service contract2) Management contract3) Lease contract4) Concession

PRIVATE OWNERSHIP5) BOOT (Build-Own-Operate -Transfer)6) BOO (Build-Own-Operate)7) Reverse BOOT8) Joint ownership9) Outright sale

COMPLETED

- PATHUM THANI - BOOT- EAST WATER - SUBSIDIARY- RATCHABURI - BOO- PHUKET - BOO- SATTAHIP - LEASING CONTRACT

PWA’S PRIVATIZATION PROGRAM

COMPLETED

PWA’S PRIVATIZATION PROGRAM

- WESTERN PERIPHERY OF BANGKOK - BOO- CHACHOENG SAO - BOOT- BANGPAKONG - BOOT- NAKHON SAWAN - BOOT- PATHUM THANI - MANAGEMENT (LOSS CONTROL) CONTRACT

IN PROGRESS

- PATHUM THANI- - CONCESSION RANGSIT

- RAYONG - BOOT

PWA’S PRIVATIZATION PROGRAM

BOOT CONTRACT SIGNED 31 AUG 1995CONTRACT PERIOD 25 YEARS++CONTRACT VALUE 4,300 MBOPENED 25 SEPT 1998TOTAL CAPACITY 288,000 CMDMINIMUB PURCHASE 140,000 220,000 CMD

SHAREHOLDERS - THAMES WATER- CH. KARNCHANG- BERLI JUCKER- PWA- THAI CAPITAL RICE- KRUNG THAI BANK- THAI MILITARY BANK

PATHUM THANI WATERPATHUM THANI WATER

•FINANCIAL- “LOWEST BID”- “TRUST” OR “REPUTATION”

•TECHNICAL

SELECTION CRITERIASELECTION CRITERIA

INCENTIVES . EXEMPT ON IMPORT DUTIES . TAX HOLIDAY

EVALUATION OF TENDERS . TECHNICAL ASPECT . FINANCIAL ASPECT

RATE OF RETURN . NEGOTIABLE BUT MUST BE REASONABLE

PROFIT REPATRIATION . NO RESTRICTION

EQUITY LIMIT . NO LIMIT FOR WATER & SEWERAGE SECTOR

GUARANTEES . MINIMUM PURCHASE

SOME CONSIDERATIONSSOME CONSIDERATIONS

• DEMAND ESTIMATES• QUALITY OF SERVICES• PENALTIES FOR BAD SERVICES• WORK FORCE• CAPITAL INVESTIMENT PLANS• RATES• ARBITRATION• RELATION WITH CONSUMERS

MAIN CONTRACT PROVISIONSMAIN CONTRACT PROVISIONS

Cabinet’s Resolution12 Sep 1992

The RoyalIrrigation

Department (RID)

The ProvincialWaterworks

Authority (PWA)

Eastern WaterResources Development

and ManagementCompany Limited

to continue its role as todevelop raw water resources & reservoirs

to establish a new company

to be responsible for the development and operation of the raw waterdelivery system in Thailand’s eastern seaboard

The Cabinet’s Resolution to EstablishThe Cabinet’s Resolution to EstablishEAST WATEREAST WATER

PRE

POST

PWA

EAST WATER

PWA IEAT PRIVATE LOANS

B 2,000 mEAST WATER

B 500 m

~ B 4,500 m for 3 Projects

100% (10 m B)

B 2,000 m

44% 5% 51%

East water’s Pre and Post PrivatizedEast water’s Pre and Post PrivatizedShareholding StructureShareholding Structure

THE STATE

* RELIEVED FROM FINANCIAL BURDEN

* RECEIVES “RETURN” ON INVESTMENTS

- REVENUE AND PROFIT SHARING

- TAXES

- RAW WATER FEE

* RECEIVES DIVIDEND AND OTHER PAYMENTS FOR SUPPORTING (SOCIAL) PROGRAM

THE PUBLIC

* BETTER SERVICE

* MORE RELIABLE SYSTEMS

* QUICKER IMPLEMENTATION

* POSSIBLY LOWER TARIFF

PERCEIVED BENEFITS TOPERCEIVED BENEFITS TOTHE STATE AND THE PUBLICTHE STATE AND THE PUBLIC

WHAT ’S NEXT ?

MWA

LISTING ? SPLIT INTO LISTING ?2 AREAS ?

PWA

LISTING ? SPLIT INTO LISTING ?5 AREAS ?